Armenia’s accession to Eurasian Economic Union to contribute to SME development

YEREVAN, August 19. /ARKA/. Head of Armenian Development Agency Robert Harutyunyan is convinced that Armenia’s accession to the Eurasian Economic Union will contribute to development of small and medium entrepreneurship in the country.

“There are certain segments of the economy where large companies can’t compete with small ones, since small businesses are optimal and have maneuvering ability,” he said in an interview with ARKA News Agency. “This will spur activities on subcontract platforms, i.e. large companies will relegate some orders to smaller companies.”

Hatutyunyan said the Armenian Development Agency will promote Armenia’s small and medium companies in the Eurasian Economic Union’s markets. Exemption from customs duties will make small and mid-scale businesses more successful as well.

“When Armenia becomes a full member of the Customs Union, small and medium companies will get new opportunities,” he said in his interview.

Earlier, Prime Minister Hovik Abrahamyan said that Armenia intended to sign an agreement to join the Eurasian Economic Union before late October 2014.

There were some 80,000 small and medium enterprises in Armenia in 2013. Their share in GDP was over 40%. The government has allocated AMD 150 million form the budget for SME development.

It established the Armenian Development Agency in 1998 for attracting direct investments in Armenia and expanding exports.

About $370 million has been attracted to Armenia and more than 1,300 new jobs have been created in the country thanks to the Armenian Development Agency’s efforts. --0-----